I love old-school tipping; that is, letting a service provider know that you appreciate their outstanding service, whatever the realm may be, with a generous gratuity.It’s a great way for individuals to reward service providers who work hard and to signal your personal appreciation of the effort they have put in to your interaction.However, tipping has morphed from a signal of good work to something that resembles a socialist experiment or the dreaded school group project: everyone expects the same outcome, regardless of their effort or the service they deliver.When you order a cup of coffee at a counter today, they often present a screen asking you to include a tip.
If tipping were acting as a price signal, as it should, then we would not know what to tip at the time of ordering.The tip would be given to a specific individual at the end of the experience, after you received your coffee, so that you could properly evaluate the experience and service to see if a tip is warranted, and if so, how much you would want to give.AUTOMATIC TIP OR SERVICE CHARGE? NEW STATE LAW REQUIRES RESTAURANTS TO TELL DINERS BEFORE THEY ORDERMaking tipping an obligation upfront takes away the agency and valuable price signaling of tipping.
In fact, it may be pooled with other tips and split by the group instead of rewarding the person who provided the service.Restaurants are one of the top places Americans are dealing with a tipping culture gone wrong.(iStock)Tips, it seems, are being added to anything and everything.
While it makes sense to tip your bellman who helps you with your bags to your room at a hotel, it does not make sense to tip on your e-commerce purchase, something I have seen popping up online from various retailers.Additionally, many service businesses are abusing tipping, as well as other "service fees" and charges, to obfuscate pricing.Instead of raising their prices, some businesses are adding dressed-up fees to their bills.
Customers want transparency in pricing,...